TCU finds irregularities in Codevasf contracts for paving

The Federal Court of Accounts (TCU) monitored the public notices and contracts related to the electronic auctions for recording prices carried out by the Companhia de Desenvolvimento dos Vales do São Francisco e do Parnaíba (Codevasf) with the aim of performing road paving services public. The process was conducted by Minister Jorge Oliveira and the decision was published last Wednesday (9).

The TCU audit detected problems that affected the competitiveness of the trading sessions, due to the use of inadequate criteria both in the qualification phase and in the proposal judgment phase. Questions were pointed out in relation to budgetary aspects and contractual execution, with the identification of overbilling caused by the non-performance of services related to the project entitled “gutter STC-01”.

According to Jorge Oliveira, the project is a large drainage structure, 1.25 meters wide, designed exclusively for high-capacity highways. “Due to its dimensions, it is not possible to install it on urban roads. Therefore, its inclusion in Codevasf’s budgets, with an eminently urban vocation, is, in principle, totally inadequate”, noted the magistrate.

In addition, the inspection carried out by the TCU identified two more relevant problems. First, it was noted the change of quantities in the Average Transport Distance (DMT) in an unjustified way. The possible inadequacy of using the price registration system (SRP) for asphalt paving was also raised.

“Although the use of SRP for asphalting works is a procedure under construction, and that, for that very reason, still presents points of improvement, its adoption envisioned an alternative that may be more advantageous compared to the usual methods” , pointed out TCU minister Jorge Oliveira.

The Minister-Rapporteur contextualized the process, noting that it is part of the initial effort to develop a system for continuous monitoring of public works budgets and notices, covering different typologies, which are financed by resources from the Ministry of Integration and Regional Development (MIDR ) and by entities linked to it.

Regarding the determinations, the TCU ordered Codevasf to present a detailed list of all the contracts in which the supply of the STC-01 project was foreseen. The Company should inform which contracts had the service measured and the reason why it was not subject to observation by the inspection. In addition, Codevasf was instructed to provide supporting documentation of the measures taken to reimburse public coffers.

Another requirement was the presentation of a complete list of contracts in which there were adjustments in the quantities of the Average Material Transport Distance (DMT), both referring to extraction and disposal, accompanied by the due technical justifications for these changes. The identification of the professionals responsible for approving these modifications was also required.

In conclusion, TCU determined that Codevasf improve its control mechanisms, especially with regard to adequacy, authorization and monitoring of contracts and amendments. This would involve establishing clear rules, criteria and responsibilities, as well as implementing adequate separation of duties. The court gave a period of 60 days to present the necessary measures or plans.

Codevasf informed in a note to the People’s Gazette that the contracts analyzed by the Court date from the years 2019 and 2020, and that, since then, it has undertaken several improvements in the processes related to electronic auctions and paving contracts. The company also states that it is committed to collaborating with the control bodies, with a view to constantly improving its procedures.

“With these improvements, part of the notes of the technical report linked to the aforementioned Judgment was overcome”, he said.

Regarding the discrepancies between the invoices presented by the contracted companies and the services actually performed, Codevasf said that it is taking measures to correct deviations and reimburse undue charges. And, furthermore, that it undertook to comply with all the requests requested by the TCU in the judgment.

In mid-March, the company was the target of a complaint for indications of cartel in asphalt contracts. Codevasf denied this and said that all trading sessions are open to the free participation of companies from all over the country and carried out through the Federal Government’s Procurement Portal (Comprasnet).

The government already said, in a note, that it followed the analysis of Codevasf’s contracts by control bodies and that it would follow the recommendations made.